IFRS 9 ECL Modelling: From Basics to Practical Implementation

IFRS 9 has transformed how financial institutions assess credit risk and recognize expected credit losses. This course provides a practical introduction to IFRS 9 ECL modelling, guiding participants from key regulatory and accounting concepts to the design, development and implementation of ECL models.

Through practical examples and real-world applications, participants will explore staging frameworks, PD, LGD and EAD estimation approaches, macroeconomic overlays, model validation considerations and implementation challenges commonly encountered by financial institutions.

The course focuses on practical applicability, helping participants understand how IFRS 9 models are built, governed and used in day-to-day risk management and financial reporting processes.

Agenda highlights

• IFRS 9 Fundamentals: Regulatory and accounting background, ECL framework overview, Three-stage impairment model
• ECL Building Blocks: Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD)
• Significant Increase in Credit Risk (SICR): Staging approaches, Quantitative and qualitative indicators, Practical implementation challenges
• Macroeconomic Scenarios and Forward-Looking Adjustments: Scenario design, Forecasting approaches, Management overlays
• ECL Model Development and Validation: Methodological choices, Performance monitoring, Validation techniques and governance
• Practical Implementation Challenges: Data requirements, Model risk considerations, Regulatory expectations and industry practices
• Case Studies and Interactive Exercises: End-to-end ECL calculation examples, Discussion of common pitfalls and best practices

Training formula

Practical takeaways:

By the end of this course, participants will be able to:

• Understand the key components of the IFRS 9 ECL framework and their business implications.
• Explain the role of PD, LGD and EAD models in ECL calculation.
• Assess staging methodologies and significant increase in credit risk (SICR) approaches.
• Evaluate the impact of macroeconomic scenarios on expected credit loss estimates.
• Identify common modelling, validation and implementation challenges.
• Contribute effectively to IFRS 9 modelling, validation and governance projects.

Participants will gain practical knowledge that can be immediately applied to:

• IFRS 9 model development projects
• ECL model validation activities
• Impairment governance frameworks
• Credit risk management processes
• Regulatory and audit reviews
• Model monitoring and performance assessment

Target audience

This course is designed for professionals who want to develop a practical understanding of IFRS 9 Expected Credit Loss (ECL) modelling and its implementation within financial institutions.

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For a detailed training specification contact us at contact@perseinstitute.com.

The Perse Learning Experience

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